Television

×

Guest Column: What keeps broadcasters from cracking factual entertainment

MUMBAI: Worldwide, the business of broadcast is typically categorized into three verticals: the entertainment piece (GECs, English, Hindi, Regional, Music and other entertainment), the News & Sports piece (mostly events driven and current affairs driven) and the Factual Entertainment piece.   

Factual entertainment refers to ‘lifestyle’ entertainment and ‘Information & Knowledge’ category. Worldwide it is monopolized by the four majors: Discovery, History, National Geographic and Scripps.

The business of factual entertainment worldwide commands 11.5% of the audience share while contributing nearly 20% of the advertising sales revenue pie.  This business is seen to be an attractive segment therefore. No major TV broadcaster from India or the Eastern part of the world has yet cracked it. Why?

In India, the ratios for both the above parameters is approximately 1.5% and 2% respectively.  In terms of audience numbers, even as it is bigger than most of the English News Channels and other English entertainment, the ad revenue contribution remains highly under-performed.

The way to crack this business requires one to reimagine the business of factual entertainment aben issue.

Business Insights

Two insights are important for this business to be understood:

1.    Brand –Unlike GECs where individual programs pull their own weight, in the business of factual entertainment, the Channel is the brand. Channel = Brand. The shows are incidental. The audience is loyal to the channel and not necessarily to an individual program. The genre provides high engagement value and the audience profile can be decoded from channel personality and hence the advertising brand fits. The brand is expected to deliver certain standards and hence no daily valuations and audience ratings do not matter much.

2.    Imagery – Not only are the content costs high but the marketing investments are also higher as imagery – leading to perception - is everything. You do not have viewers in this category…you need to create fans.

Reimagining the Business Model

The business model needs to be looked at absolutely differently as compared to other segments. The revenue streams need to come from five different sources:

1.    Pre-Sales

2.    Co-Production

3.    Broadcast

4.    Formats, and

5.    Syndication

public://Untitled-3_16.jpg

In this model, while individual contribution shares may vary, broadcast is seen to contribute no more than 25-30%. The shelf life of content is far longer and investments in quality content need to pay off through several channels as above. Example - Co-production can help set-off high initial content costs. No wonder then that Discovery’s annual content budgets are in excess of a few billion dollars.

The broadcast players therefore need to decide to invest in Brand and Content as above. Most of all they will need to understand that this business has a long gestation period as getting the three unique factors – Audience communities as Fans, impeccable Brand integrity and cutting-edge Content – right makes the business thrive. Over and above this, the business model needs to follow the Five-Point Strategic approach rather than being looked at as a pure-play broadcast business.

public://Untitled-4_3.jpg

(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/star_0.jpg?itok=3f_oVrKK
Bigg Boss Telugu S3 propels growth of Star Maa

MUMBAI: Star Maa has ranked number 3 in the top 10 channels across genre in week 33 of BARC India ratings. Bigg Boss season 3 which has been the biggest launch property across seasons has been growing week on week. The channel has been leading the Telugu GEC space consistently for more than a year...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/man.jpg?itok=kG9Kwaf7
Man v/s Wild with Bear Grylls and PM Modi brings 88% viewership growth for Discovery

MUMBAI: Man v/s Wild with Bear Grylls and PM Modi brings 88 per cent growth in the viewership of Discovery channel. The show was broadcasted across 12 channels of Discovery network. The original airing of Man V/s Wild with Bear Grylls and PM Modi recorded 6.9 million impressions and ~400 million...

Television TV Channels Specialised and Niche
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/24/KASHIR.jpg?itok=Yra6mb6C
DD Kashir sees 50% increase in viewership from J&K between 5-16 August

After the abrogation of article 370 in Jammu and Kashmir, there have been speculations all over the media about communication blackout in the valley. Commenting on the issue, Prasar Bharati CEO Shashi Shekhar Vempati said between 5 to 16 August, Kashmir’s TV channel DD Kashir saw 50 per cent...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/barc_0.jpg?itok=D9gPIX65
BARC week 33: Vimal Elaichi Pan Masala top brand

MUMBAI: The Broadcast Audience Research Council (BARC) India has released its data for top advertisers and brands for the period between 10 August 2019 and 16 August 2019. The data reflects top 10 advertiser and brands across genre on Indian television, including OOH screen, (U+R): 2+, Individuals...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/sony.jpg?itok=ndXr-dy1
Football fans gear up for Serie A, the top-tier Italian football league on Sony Pictures Sports Network

MUMBAI: The upcoming season of Serie A will be the 118th season of top-tier Italian football and fans can expect nothing less than non-stop nail-biting action from August 24, 2019 to May 24, 2020 live and exclusive on SONY TEN 2 and SONY TEN 2 HD channels.

Television TV Channels Sports
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/VH1.jpg?itok=Jb0IBHao
Witness the women in music dominate the 2019 Video Music Awards, exclusively on Vh1

MUMBAI: The 2019 Video Music Awards couldn’t get bigger, as Ariana Grande and Taylor Swift vie for the prestigious ‘Moon Person’ statue with nods in 10 categories each, Jonas Brothers make a grand return to the VMA stage, a sparkling stage debut of sensational Camila Cabello and Missy Elliott...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/hasbro.jpg?itok=tFJOehPN
Hasbro to acquire Entertainment One for approx $4 bn

Hasbro is set to acquire Entertainment One (eOne) in an all-cash transaction valued at approximately $4 billion. The deal enhances Hasbro’s brand portfolio, which includes My Little Pony, with the global preschool brands Peppa Pig and PJ Masks, as well as a slate of additional brands under...

Television Production House Fiction
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/Kesari.jpg?itok=19J9cwD9
Zee Cinema's 'Kesari' is highest-rated premiere on Independence Day

The World Television Premiere of Kesari on 15 August on Zee Cinema has set a new benchmark across the Hindi movies cluster making it No.1 in the category. The historic war drama garnered 15.6 Mn impressions as per BARC data for Week 33 for 2+ audiences in HSM Urban + Rural markets and is one of the...

Television TV Channels Movie Channels
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/08/23/alic.jpg?itok=IxfzlSQI
Sony SAB celebrates 'Khushiyon Ke Sab Sizes' with its latest show 'Tera Kya Hoga Alia'

Sony SAB broadens its slate of shows with its exclusive brand-new offering, Tera Kya Hoga Alia. This one-of-a-kind yet highly relatable story traces the insecurities and concerns faced by the protagonist, Alia and showcases the journey of the married couple, Alia and Alok, who were high school...

Television TV Channels GECs

Sign up for our Newsletter

subscribe for latest stories